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Think Analog!
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- By Karthik Sundaram
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Rob S. Chandra, general partner at Bessemer Venture Partners urges the entrepreneur world to look at the needs of analog
applications.
Book-to-build ratio was 1.0 and hovered around 1.1 in the last two quarters of 2003. The first half of 2003 was a continuation of the recovery from 2001-02, observes Rob S. Chandra, a general partner with Bessemer Venture Partners. “There are probably four reasons for this,” says Chandra. Inventory in the supply chain depleted drastically, placing a demand in the chain.
Secondly, says Chandra, there has been growth in geographic markets driven by unique users. “I think, across the board, expansions in China and India has also been a good influence in tweaking the downward curve,” opines the investor, “and the industry itself has found optimism.”
The cyclical industry has found momentum for the next phase.”If you look back at the last 40 years, the chip business has been growing at 12 percent, doubling every 6 years in effect,” Chandra says. There are not many industries that show such persistant growth over so many decades.
“George Gilder said it best, ‘Semiconductors invade new markets,’” remarks Chandra. Automotive is a good example. Till the last decade, the steel was the largest component in the vehicle, and now, the electronics have taken the spot. “The overall growth in the automotive industry has barely crossed four percent, yet the automotive chip sector has doubled,” points out the general partner. “The other phase change is happening in the retail market, as RFID gains widespread applications.”
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